Pertamina Officially Annexed Masela Block

JAKARTA - PT Pertamina (Persero) officially holds the right to participation or participating interest (PI) in the Masela Block from Shell Upstream Overseas Services Ltd by 35 percent.

The signing of the sales purchasing agreement (SPA) was witnessed by the Minister of Energy and Mineral Resources Arifin Tasrif, Director General of Oil and Gas Tutuka Ariadji, Head of SKK Migas Dwi Soetjipto, and President Director of Pertamina Nicke Widyawati and President & Chair Executive Employee of the Petronas Collection Tan Sri Tengku Muhammad Taufik.

The signing of the sale and purchase agreement for ownership of Blok Masela was carried out directly by PHE President Director Wiko Migantoro, Naib Executive President & Chair of PETRONAS Executive Employees, Datuk Adif Zulkifli, and Director Finance for Acquisition Investment and NBD Asia Pacific Shell Kuo Tong Soo.

Later, the management of the Masela Block will be carried out by Pertamina and Petronas, which hold Pertamina's participation rights by 20 percent and Petronas by 15 percent.

Pertamina President Director Nicke Widyawati said, in order to meet the national energy needs, a commitment is needed to maintain oil and gas supply from the upstream side.

"In addition to managing existing fields, a strategy is needed to develop new fields, one of which is the Eternal Field in the Masela Block," said Nicke.

Quoted from Shell's official lama, the basic consideration for the sale was US$325 million in cash with an additional amount of the contingent of US$325 million which must be paid during the final investment decision (FID).

"The decision to sell our participation in Masela PSC is in line with our focus on a disciplined capital allocation," said ShellZo's Director of Integrated Gas and Hulu.

Previously, Minister of Energy and Mineral Resources (ESDM) Arifin Tasrif said Pertamina would pay half of the agreed value as a sign of completion.

"That was half as a sign of completion," said Arifin, who was met by the media at the Ministry of Energy and Mineral Resources Building, Friday, June 16.